Abstract
This paper examines the determinants of household natural gas demand in 18 selected OECD countries over the period 2004 to 2015. Household natural gas demand is specified as a function of its own price, income, population and climate. The long-term price and income elasticities of natural gas demand were estimated pooled data regressions. The results provide evidence that natural gas prices, per capita GDP, population and climate are significant factors in explaining household natural gas demand. More specifically, population is found to be the most influential factor on household natural gas demand. The results indicate that natural gas demand has negative and positive price and income elasticities, respectively. Also, both price and income are inelastic in the long-term.
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